WHAT IS A START UP? - Vidushri Bagri

 

Hello everyone! This blog is all about start-ups and all the factors that surround it, so I thought it would only be fair on our part to explain what a start-up is.

By definition, “A start up is a young company established by one or more entrepreneurs to create unique and irreplaceable products or services. It aims at bringing innovation and building ideas quickly.”  In simple words a start-up is a company formed by a person or a group of people to achieve a certain task. For this generation, whose minds are filled with so many different ideas, start-ups have become the trend.

Before starting up any company an entrepreneur has to take several factors into consideration. The major factors include –

1)    LOCATION

This is one of the most crucial decisions that a businessperson has to take. Location has the power to either make or break your business. It is very important to locate your business where you feel it will be most profitable. It varies for each start-up—some might be profitable in the heart of the city, whereas others might do good in the outskirts.  

2)  STRUCTURE

A businessperson should know what structure suits their company best. If a person is singlehandedly taking care of their business, then it is a sole proprietorship. When there is a group of people coming together for the betterment of the business, then it would be a partnership.  Therefore, knowing what structure is best for your business is definitely something that should be kept in mind.

3)   FUNDING

In my opinion, funding is the most important factor for any start-up. Without fundings and investments no start-up can be formed. Therefore, having prior knowledge about where to get funds from is a strict must.

 Now that you know what a start-up is, and the things an entrepreneur should take into consideration before starting one, let’s move to the different kinds of start-ups that exist.

     SMALL BUSINESS START-UPS

This type of start-up is self-funded and started by regular people. These start-ups may have an official website but generally don’t have apps.  Best examples are hairdressers, travel agents etc.

2)  LIFESTYLE START-UPS

These start-ups are created purely out of the passion of a person. People who have hobbies and are extremely eager to follow their passion for work form such start-ups. Examples are dancers who earn by teaching dance and choreography etc.

3) SOCIAL START-UPS

The general belief of people is that the main aim for setting up any business  is to earn money. Despite this, there are many people who have start-ups with the aim of doing good for society. Their major fundings come from donations made by the people and the government. Such start-ups include NGOs, charitable organizations etc.

4) BUYABLE START-UPS

There are some start-ups that are quite innovative and are built from scratch. However, after some time they are sold to bigger companies at a certain value. The bigger companies benefit from such small businesses. For example, companies like Amazon and Uber buy a lot of these small businesses.

5)  BIG BUSINESS START UPS

Certain businesses have a long timespan. It is majorly due to the preferences of the customers. Therefore, it is very important for businesses to change themselves according to the trend to satisfy the needs of the modern buyers.

6) SCALABLE START UPS

Mostly tech-related companies fall in this group as they have great potential to capture international markets. They hire the best employees possible and search for investors to give a boost to their ideas and make it scalable.

 

I hope that you got a clear picture of what exactly a start-up is and its kinds. It is also very important to know that it is not compulsory that your business journey is a smooth one and do not lose hope during lows. Thank you. 

 

 

1)